If you’re paid by the hour and worked more than 40 hours last week, you’re probably owed overtime. Here’s how to calculate it yourself, check your paycheck, and spot the cases where the math is less obvious.
The short version
- Under federal law, most hourly workers get at least 1.5× their regular rate for hours over 40 in a workweek.
- Overtime is based on a fixed workweek, not on daily hours, except where state law says otherwise.
- Non-discretionary bonuses and shift differentials can raise your “regular rate”, and your overtime rate with it.
The basic rule
The federal Fair Labor Standards Act (FLSA) requires employers to pay non-exempt employees at least one and a half times their regular rate of pay for every hour worked over 40 in a workweek. A workweek is any fixed, recurring period of seven consecutive days (168 hours) set by the employer; it doesn’t have to be Monday through Sunday.
How to calculate overtime pay, step by step
- Find your regular rate. For most hourly workers, this is your hourly wage.
- Multiply by 1.5 to get your overtime rate.
- Count hours over 40 in the workweek.
- Multiply overtime hours by the overtime rate.
- Add your regular pay for the first 40 hours.
Example
Jordan earns $19 an hour and works 47 hours. Regular pay: 40 × $19 = $760. Overtime rate: $19 × 1.5 = $28.50. Overtime pay: 7 × $28.50 = $199.50. Total gross pay: $959.50.
When your regular rate is higher than your hourly wage
Your “regular rate” for overtime purposes generally includes more than your base wage. Non-discretionary bonuses (for example, attendance or production bonuses you’re promised in advance) and shift differentials are usually included. That raises the overtime rate.
Example with a bonus
Sam earns $20 an hour, works 45 hours, and gets a $45 weekly production bonus. Total straight-time pay is (45 × $20) + $45 = $945. Regular rate: $945 ÷ 45 hours = $21. Overtime premium: 5 hours × ($21 × 0.5) = $52.50. Total pay: $997.50, which is $2.50 more than if the bonus were left out of the overtime rate.
Daily overtime and double time
Federal law doesn’t require overtime for long days, weekends or holidays, but some states do. California, for example, requires overtime for hours over 8 in a workday and double time for hours over 12 in a workday. Always check your state labor department’s rules, since the rule that pays you more generally applies.
Are salaried workers eligible?
Being paid a salary doesn’t automatically make you exempt from overtime. To be exempt as an executive, administrative or professional employee, you generally must be paid at least a minimum salary set by the Department of Labor and your main job duties must meet specific tests. If you’re salaried, convert your pay with our salary to hourly calculator to see what your long weeks are really worth, and check the current threshold on the Department of Labor’s website.
What to do if your paycheck looks wrong
- Compare your pay stub with your own record of hours (keep notes or photos of your schedule).
- Ask payroll or HR to explain the calculation, in writing if possible.
- If the problem isn’t resolved, you can contact the U.S. Department of Labor’s Wage and Hour Division or your state labor department. Filing a complaint is free.
Planning around a bigger paycheck? Put it to work with our monthly budget guide.
